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Zydus Wellness Q4 Results Review - Market Share Loss In Malted Food Category A Drag On Volumes: ICICI Direct

Zydus Wellness would be expanding overall distribution network to 3 million retail outlets.

<div class="paragraphs"><p>Zydus Wellness' Complan brand. (Source: Company website)</p></div>
Zydus Wellness' Complan brand. (Source: Company website)

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ICICI Direct Report

Zydus Wellness Ltd. saw sales growth of 11.4% led by 7.8% pricing growth.

Volume growth was 3.5% in Q4; FY23 volume growth was 4.8%. Ebitda was at Rs 144.6 crore, up 2.2% YoY, with margins at 20.3%.

Zydus Wellness' consequent adjusted profit after tax was at Rs 145.3 crore.

Key triggers for future price performance:

  • With the softening of crude, aspartame, palm oil prices and price hikes taken in last one-year, gross margins to inch up to 280 basis points in the next two years. However, milk prices continue to remain elevated.

  • Though Zydus Wellness is gaining market share in prickly heat powder and glucose powder category, it is losing market share in MFD (Complan) category, which is a drag on growth • Zydus would be expanding overall distribution network to 3 million retail outlets. Distribution expansion along with innovation is key for successful execution

Click on the attachment to read the full report:

ICICI Direct Zydus Wellness Q4FY23.pdf
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